The President of the United States plans to increase the Medicare tax for people with high incomes

On Tuesday, through a statement, US President Joe Biden announced a new package of proposals in which he believes an increase in Medicare taxes for people with incomes above $400,000.

At the moment, the rate is 3.8% and is expected to rise to 5%, which Biden said is a “modest” increase. which aims to extend the solvency of the Medicare Hospital Insurance (HI) trust until at least 2050. “Let’s ask the richest to pay a little more than their fair share to strengthen Medicare for all in the long run.” , said the President of the United States.

Biden is expected to present his budget this Thursday in addition to reaching agreements with Republicans who are seeking to cut social spending. before increasing the debt limit, which has already reached $31.4 trillion.

Regarding tax increases for Medicare members, the president noted that “when Medicare was enacted, the wealth of the richest 1 percent of Americans was no more than five times that of the poorest 50 percent combined, and it makes sense to make some adjustments to reflect that reality today.” “, – he said.

Therefore, he remains convinced that this is a viable solution to keep the federal program solvent. Similarly, as part of the proposal, negotiations are under way to drug cost saves about $200 billion.

This week, some economists also spoke of a possible insolvency of the Social Security Service, which predicts a 25% reduction in monthly checks for beneficiaries. Both programs account for a third of federal spending and are expected to continue to rise in the coming years.

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